Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Newmont Corp., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
The financial liquidity ratios exhibit a general downward trend over the analyzed periods, indicating changes in the company’s short-term financial strength and its ability to meet immediate obligations.
- Current Ratio
- The current ratio started at a high level of 3.31 in the first quarter of 2020 and generally declined over the next several quarters, reaching a low point of 1.25 by the fourth quarter of 2023. A moderate recovery followed, with the ratio increasing to 2.15 in the first quarter of 2024. This pattern highlights a reduction in current assets relative to current liabilities over the long term but suggests some recent improvement in liquidity.
- Quick Ratio
- The quick ratio similarly trended downward from 2.1 in March 2020 to a low of 0.57 by March 2024, indicating a diminishing capacity to cover current liabilities without relying on inventory. The decline was more pronounced starting from mid-2022, with ratios consistently below 1.5 and falling sharply below 1.0 in late 2023 through early 2024, which may raise concerns about the company’s ability to quickly convert assets into cash to meet short-term obligations.
- Cash Ratio
- This ratio showed a decreasing pattern as well, moving from 1.99 in the first quarter of 2020 down to 0.43 by the first quarter of 2024. The downward movement was steady and became more significant from mid-2022 onward, indicating a reduced proportion of cash and cash equivalents relative to current liabilities. This suggests a tightening of the company’s liquidity buffer held in cash form.
Overall, the analysis reveals a contraction in the company's liquidity position over the examined timeframe. The declining ratios across all three metrics imply that the company has gradually reduced its current assets, quick assets, and cash reserves relative to its current liabilities. The recovery in the current ratio during the last observed quarter may reflect management actions to strengthen liquidity; however, the quick and cash ratios remained low, suggesting that this improvement might be driven by increases in inventory or other less liquid current assets.
Current Ratio
Newmont Corp., current ratio calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Current assets | 11,806) | 7,512) | 5,955) | 6,134) | 6,559) | 6,515) | 6,320) | 6,907) | 7,059) | 7,696) | 7,472) | 7,445) | 8,364) | 8,505) | 7,660) | 6,684) | 6,455) | ||||||
| Current liabilities | 5,482) | 5,998) | 2,808) | 2,693) | 2,752) | 2,926) | 2,324) | 2,451) | 2,417) | 2,654) | 2,799) | 2,787) | 3,480) | 3,369) | 2,703) | 2,378) | 1,952) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||
| Current ratio1 | 2.15 | 1.25 | 2.12 | 2.28 | 2.38 | 2.23 | 2.72 | 2.82 | 2.92 | 2.90 | 2.67 | 2.67 | 2.40 | 2.52 | 2.83 | 2.81 | 3.31 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||
| Freeport-McMoRan Inc. | 2.35 | 2.42 | 2.90 | 2.94 | 2.79 | 2.46 | 2.56 | 2.73 | 2.37 | 2.52 | 2.50 | 2.28 | 2.35 | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= 11,806 ÷ 5,482 = 2.15
2 Click competitor name to see calculations.
- Current Assets
- Current assets demonstrated an overall upward trend from March 2020 through March 2024. Starting at 6,455 million USD, the value increased steadily with some fluctuations, reaching a peak of 11,806 million USD in March 2024. Notably, after a dip towards the end of 2022 and mid-2023, there was a significant rebound in the last two quarters, indicating improved liquidity or asset accumulation in the most recent period.
- Current Liabilities
- Current liabilities exhibited moderate variability across the quarters. After rising from 1,952 million USD in March 2020 to a peak of 3,480 million USD in March 2021, the figures generally decreased until late 2021 and early 2022. A notable spike occurred in December 2023, where liabilities almost doubled compared to previous quarters, reaching 5,998 million USD, before slightly decreasing to 5,482 million USD in March 2024. This suggests a period of increased short-term obligations at the end of 2023.
- Current Ratio
- The current ratio trended downwards overall from 3.31 in March 2020 to a low of 1.25 in December 2023, indicating a declining buffer of current assets over current liabilities. Despite some periods of improvement, the ratio mostly moved downward, reflecting increasing pressure on short-term liquidity. The ratio rebounded to 2.15 in March 2024, aligning with the previous increase in current assets and the partial reduction in current liabilities, which suggests a recovery or stabilization of liquidity ratios in the latest quarter.
- Summary
- The data reveals a company's evolving liquidity condition over the observed periods. While current assets generally increased, current liabilities showed episodic spikes, especially late in the timeline, impacting the current ratio negatively. The declining current ratio throughout most of the periods suggests growing short-term obligations relative to assets, but the recovery in the final quarter indicates recent improvements in managing working capital or liquid resources.
Quick Ratio
Newmont Corp., quick ratio calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Cash and cash equivalents | 2,336) | 3,002) | 3,190) | 2,829) | 2,657) | 2,877) | 3,058) | 4,307) | 4,272) | 4,992) | 4,636) | 4,583) | 5,518) | 5,540) | 4,828) | 3,808) | 3,709) | ||||||
| Trade receivables | 782) | 734) | 78) | 185) | 348) | 366) | 289) | 364) | 413) | 337) | 334) | 341) | 263) | 449) | 324) | 255) | 220) | ||||||
| Investments | 23) | 23) | 24) | 409) | 847) | 880) | 755) | 51) | 72) | 82) | 157) | 222) | 240) | 290) | 313) | 310) | 175) | ||||||
| Total quick assets | 3,141) | 3,759) | 3,292) | 3,423) | 3,852) | 4,123) | 4,102) | 4,722) | 4,757) | 5,411) | 5,127) | 5,146) | 6,021) | 6,279) | 5,465) | 4,373) | 4,104) | ||||||
| Current liabilities | 5,482) | 5,998) | 2,808) | 2,693) | 2,752) | 2,926) | 2,324) | 2,451) | 2,417) | 2,654) | 2,799) | 2,787) | 3,480) | 3,369) | 2,703) | 2,378) | 1,952) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||
| Quick ratio1 | 0.57 | 0.63 | 1.17 | 1.27 | 1.40 | 1.41 | 1.77 | 1.93 | 1.97 | 2.04 | 1.83 | 1.85 | 1.73 | 1.86 | 2.02 | 1.84 | 2.10 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||
| Freeport-McMoRan Inc. | 1.34 | 1.31 | 1.59 | 1.62 | 1.62 | 1.57 | 1.65 | 1.84 | 1.60 | 1.66 | 1.66 | 1.45 | 1.38 | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 3,141 ÷ 5,482 = 0.57
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets exhibited an overall downward trend from March 31, 2020, through March 31, 2024. Initial increases were observed in 2020, peaking toward the end of that year at approximately 6.3 billion USD. However, from early 2021 onward, the quick assets progressively declined, reaching their lowest levels near the end of 2023 and early 2024, fluctuating around the 3.1 to 3.8 billion USD range. This indicates a reduced liquidity buffer over the examined period.
- Current Liabilities
- Current liabilities showed variable movement over the periods. Starting at approximately 1.95 billion USD in March 2020, current liabilities increased substantially toward the end of 2020 and early 2021, hitting around 3.5 billion USD. A temporary reduction followed through much of 2021 and 2022, but a notable surge occurred in late 2023 and early 2024, with current liabilities rising sharply to near 6.0 billion USD and 5.5 billion USD, respectively. This sharp increase reflects a significant rise in short-term obligations.
- Quick Ratio
- The quick ratio initially fluctuated moderately between 1.7 and 2.1 from March 2020 through late 2021, suggesting relatively stable short-term liquidity. From 2022 onward, a pronounced decline in the quick ratio is evident. By the end of 2023 and into early 2024, the quick ratio fell below 1.0, reaching as low as approximately 0.57 by March 2024. This decline signals deteriorating ability to cover current liabilities with liquid assets.
- Summary of Financial Trends
- The combined movement of declining quick assets and sharply increasing current liabilities in the most recent quarters resulted in the quick ratio dropping below the critical threshold of 1.0. This suggests heightened liquidity risk and potential challenges in meeting short-term obligations promptly. The earlier periods showed more balanced liquidity, but the recent trend indicates increased financial strain. Monitoring and addressing working capital management appears vital in the near term.
Cash Ratio
Newmont Corp., cash ratio calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Cash and cash equivalents | 2,336) | 3,002) | 3,190) | 2,829) | 2,657) | 2,877) | 3,058) | 4,307) | 4,272) | 4,992) | 4,636) | 4,583) | 5,518) | 5,540) | 4,828) | 3,808) | 3,709) | ||||||
| Investments | 23) | 23) | 24) | 409) | 847) | 880) | 755) | 51) | 72) | 82) | 157) | 222) | 240) | 290) | 313) | 310) | 175) | ||||||
| Total cash assets | 2,359) | 3,025) | 3,214) | 3,238) | 3,504) | 3,757) | 3,813) | 4,358) | 4,344) | 5,074) | 4,793) | 4,805) | 5,758) | 5,830) | 5,141) | 4,118) | 3,884) | ||||||
| Current liabilities | 5,482) | 5,998) | 2,808) | 2,693) | 2,752) | 2,926) | 2,324) | 2,451) | 2,417) | 2,654) | 2,799) | 2,787) | 3,480) | 3,369) | 2,703) | 2,378) | 1,952) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||
| Cash ratio1 | 0.43 | 0.50 | 1.14 | 1.20 | 1.27 | 1.28 | 1.64 | 1.78 | 1.80 | 1.91 | 1.71 | 1.72 | 1.65 | 1.73 | 1.90 | 1.73 | 1.99 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||
| Freeport-McMoRan Inc. | 0.99 | 1.03 | 1.33 | 1.40 | 1.30 | 1.28 | 1.43 | 1.60 | 1.29 | 1.37 | 1.39 | 1.14 | 0.99 | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 2,359 ÷ 5,482 = 0.43
2 Click competitor name to see calculations.
- Total Cash Assets
-
Total cash assets exhibited an overall decline from the beginning of 2020 through the first quarter of 2024. The highest level was observed around December 2020 at 5,830 million USD, followed by a general downward trend. Notably, the cash assets dropped from 4,344 million USD in Q1 2022 to 2,359 million USD by Q1 2024, indicating a significant reduction in liquidity over this period.
- Current Liabilities
-
Current liabilities showed a more variable pattern with some fluctuations. After peaking at 3,480 million USD in Q1 2021, liabilities decreased somewhat mid-2021 to 2,654 million USD by Q4 2021, then remained relatively stable through much of 2022. However, there was a sharp increase in liabilities toward the end of 2023 and beginning of 2024, with values rising notably to 5,998 million USD in Q4 2023 and slightly decreasing thereafter to 5,482 million USD by Q1 2024.
- Cash Ratio
-
The cash ratio, which measures liquidity by comparing cash assets to current liabilities, remained relatively healthy above 1.0 until late 2023. It peaked near 1.99 in Q1 2020 but exhibited a gradual decline over time. In early 2023, the ratio started to approach closer to 1.0, dropping from 1.28 in Q4 2022 to 0.5 in Q4 2023, reaching 0.43 by Q1 2024. This decline reflects a diminishing ability to cover current liabilities solely with cash assets, signaling potential liquidity concerns by the most recent quarter.
- Overall Observations
-
The decreasing total cash assets combined with a sharp increase in current liabilities toward the end of the observed period led to a pronounced deterioration in the cash ratio. The trend suggests increasing pressure on liquidity, which may warrant further investigation or management action to ensure adequate short-term financial stability. The period from early 2023 to early 2024 particularly highlights vulnerabilities in liquidity metrics.